Moody's Rating for Starbucks

RATING

A3

Rating

A3

Rating Update

NEW

Date of Rating

11/21/2017

Rating Office

USA

MOODY'S ANALYTICS RISK SCORE

1

Moody’s Daily Credit Risk Score is a 1-10 score of a company’s credit risk, based on an analysis of the firm’s balance sheet and inputs from the stock market. The score provides a forward-looking, one-year measure of credit risk, allowing investors to make better decisions and streamline their work ow. Updated daily, it takes into account day-to-day movements in market value compared to a company’s liability structure.

Starbucks Corp. engages in the provision of premier roaster, marketer, and retailer of specialty coffee. It operates through the following segments: Americas; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA); and Channel Development. The Americas, CAP, EMEA segments sells coffee and other beverages, complementary food, packaged coffees, single-serve coffee products, and a focused selection of merchandise through company-oriented stores, and licensed stores. The Channel Development segment trades coffee, and other related products to institutional foodservice industries. The company was founded by Jerry Baldwin and Howard S. Schultz on November 4, 1985 and is headquartered in Seattle, WA. .

Starbucks Stock Price History by Markets Insider

Starbucks is a pioneer of the “second wave” coffee movement, with its origins in Seattle near the famous Pike Place Market. Starbucks stock price has seen tremendous growth since its 1992 IPO. Starbucks stock price history and company story is one of success.

Howard Schulz, the legendary CEO who helmed the coffee chain from 2008 to 2016, met the three original founders in 1982. Schulz, a Brooklyn native was working for a Swedish coffee maker manufacturer and became curious as to why the trio was buying so many coffee filters.

Inspired by the coffee houses of Italy — and Pacific Northwest neighbor Peet’s Coffee — Schulz joined the team, and convinced Starbucks to try a new kind of coffee shop for American caffeine lovers.

Schulz left the company in 1985 and began his own chain, called Il Giornale. Two years later he acquired Starbucks and its assets, folding in his own shop to brings Starbucks’ total store count to 17, with locations as far away as Vancouver and Chicago.

As Starbucks began aggressively expanding across the United States, Schulz made a point of not franchising.

By 1991, just a year before its IPO, Starbucks became the first privately owned American company to offer a stock option program to part-time employees. The store count was still less than 100.

The next year, with 165 total locations, Starbucks filed paperwork with the SEC for an initial public offering.

2.1 million shares — 12% of the company — hit the NASDAQ exchange under the ticker $SBUX on June 26, 1992. Starbucks stock price began trading at $17 (adjusted for subsequent stock splits), raising $28 million. When the closing bell rang on that first day of trading, Starbucks stock price was up 26% percent to $21.50 (also adjusted for splits).

Starbuck’s market value on its first day listed was more than 60 times the previous year’s earnings and brought in $28 million. That cash infusion would allow Starbucks to double its store footprint over the next year.

While rapidly expanding over the next decade to 5,886 stores worldwide, its stock rose in step. Even in negative periods, Starbucks' stock price has generally only seen small periods of declines, followed by much larger stock price gains.

In 2001, Starbucks enlisted the help of Goldman Sachs to list its stock on the Osaka-based Nasdaq Japan market, a debut offering that brought in $110.8 million.

By 2010, almost four full decades after its founding and with Starbucks’ stock price still on the near-constant rise, the chain launched mobile payments through its app along with a loyalty program. Universal wifi in all 16,858 was also announced. These continuous improvements sent Starbuck’s stock price even higher.

On its 40th anniversary in 2011, Starbucks' stock price was up 220.8% and has seen many spikes. Starbucks’ stock price hit a then high of $64.57 which the stock price hit in June 2017. However after a negatively perceived earnings report in late July 2017 Starbucks stock price plunged in a short space of time to the low $50s.

Yet overall in the mid 2010s, Starbucks’ stock price has continually increased through programs like college tuition reimbursement for employees (announced in 2014) and strategic acquisitions like La Boulange bakery and Teavana.

Today the coffee chain has 22,519 locations and claims it has reached 99$ ethical sourcing for its coffee beans. The future of Starbucks’ stock price